I think there might be ways to escape treaties modifications. It depends on how you set it up and how you fund it. My proposal athttp://mgiannini.b...dustry-to-pay.html andhttp://mgiannini.b...-bonds-common.html
is simple but you have to start with common issuance of EU bonds which are legally national but administered at EU level with a system of cross-guarantees. Later a EU financial transaction tax will gradually fund EU issuances as a kind of EU budget own resource . The European Monetary Fund will become the agency institutionalizing the common issuance of EU bonds. Yet I do not agree that this fund be financed with penalties on countries deviating from the Pact. It's a nonsense of Daniel Gros' proposal.
In other words the fund is to be set up but not for the purposes and with the objectives to deal with euro area member countries in financial
difficulties, imposing IMF style conditionalities, and capable of organising an orderly default as a measure of last resort.

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The Wall Street Journal’s Brussels blog is produced by the Brussels bureau of The Wall Street Journal and Dow Jones Newswires. The bureau has been headed since 2009 by Stephen Fidler, who was previously a correspondent and editor for the Financial Times and Reuters. Also posting regularly: Matthew Dalton, Viktoria Dendrinou, Tom Fairless, Naftali Bendavid, Laurence Norman, Gabriele Steinhauser and Valentina Pop.